Arabia CSR Network newsletter

June 2020Volume 9 Issue 106

Building Partnerships for aSustainable Future ©

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2pageArabia CSR Network | Newsletter

Note from the President & CEO Arabia CSR Network

on sustainable energy production. This has been amply magnified with the ever increasing electricity demand which has shown a steady growth at approximately 5% a year. Additionally, with the dwindling supply of readily available natural gas supplies it makes absolute sense to expand renewables capacity because it will lead to the decrease of energy costs. With the increasing fall in technology costs and the added drive by most countries to reduce carbon dioxide emissions, a demand for the procurement of solar and wind projects has surged. Consequently, the governments of many countries across the region have set up ambitious targets towards achieving clean energy. Once again, Dubai has led the way by aiming for 75% of its energy to come from clean sources by 2050. The government of Dubai brought on stream 98GW of renewable energy at the start of 2020 as per plan. Furthermore, an additional 39GW renewable energy generation capacity is expected to be made available by 2025.

Although presently only countries with the highest hydropower capabilities hold the capacity for most renewable sources at their disposable, nevertheless this is an extremely fluid situation as the landscape continues to change. This is due to more and more countries joining in on what is being seen as the way of the future and more and more series of large-scale solar and wind projects being delivered. However, there is also a need to make the necessary infrastructural adjustment as renewables start to occupy a more central role in the energy eco-system. There is an urgent need for the consumers, investors and regulators to overcome several structural and technical obstacles. The latter promises to be the biggest challenge as regulatory reform entails the merging of renewable energy which is primarily composed of photovoltaic solar panels, into power grids. This requires the formulation of new regulations and policy adjustments. Furthermore, there would be added pressure to ensure grid flexibility and stability, integrating new technologies such as battery-storage and electric vehicles, and establishing commercially attractive business models. Another area, which would need some looking into, would be finding an answer to the challenge of breaking the link between electricity and water production that is hard-coded into the region’s utilities. But if there is one thing that the on-going pandemic has taught us, it is that there is nothing stronger than the human spirit of resilience and endurance in the face of odds. As we have come out of the month of Ramadan with the blessings of Eid ul Fitr, let us all pray and hope that the worst is behind us. The virus might have shaken us but it has not broken us and we will emerge stronger and better.

The growth of businesses and investment has seen a significant decrease globally. This has been due to the complete shutdown of almost all of the global economy since the beginning of this year. The measures which were put in

place to check the rampant advance of the coronavirus have contributed to the collapse of oil prices and fall in tourism and consumer spending, thereby leading analysts to worry and raise questions about some of the region’s highest growth sectors. However, it is not all doom and gloom as some sectors have shown promise and resilience even in such trying times. We need to use current circumstances to rally support for a global effort to tackle climate change as COVID-19 has brought in place a unique chance to steer the economy away from carbon. Climate friendly investment strategies are needed to get economies back on their feet with the help of affordable and low interest rates. The renewables sector is one such area that continues to grow even with existing supply chain for projects being disrupted, leading to the commercial models for privately financed power plants being upset. In spite of these setbacks, one thing that has not wavered or changed has been the region’s commitment towards lowering the cost of energy through the diversification of energy sources.

According to reports from the Abu Dhabi World Future Energy Summit held in January 2020, UAE has taken a huge stride forward into becoming one of the leaders in championing the transition from unsustainable carbon-production to sustainable renewable energy. This has been further evidenced by the completion of the first utility-scale renewables projects in the GCC region which has helped increase confidence among the stakeholders including financiers, developers and governments. The biggest plus point of this transformation has been the dramatic reduction in the cost of financing and delivering of projects. There is hope that in the future the sector will receive more support through the wide adoption of small and medium-scale schemes such as rooftop solar. There is great reason to be optimistic as the Middle East and North African region is well equipped with about 28GW of renewable energy production capacity installed across it. According to estimates made by experts, the biggest component of renewable energy at disposal is hydropower with 21GW. The total renewable energy present represents only 7 % of the region’s power generation capacity and thus points towards the need for increasing focus

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ACSRN News & Events

Impact of COVID-19 on Energy Efficiency Market

On 12th May, Arabia CSR Network attended a webinar organised by Clean Energy Business Council (CEBC), wherein the expert speakers discussed about the estimated trends in Energy Efficient Market due to the COVID-19 pandemic. The Head of Energy Efficiency at the International Energy Agency (IEA) talked about the expected drop in energy efficiency markets in 2020 due to low CO2 emissions amid COVID-19 and the urgency needed for governments to look for long term recovery without slowing down the clean energy transition.

Executive Director of Dubai RSB gave an insight about RSB (Dubai Regulatory & Supervisory Bureau for Water & Electricity) and explained about the survey conducted by them among its 34 accredited entities to understand the impact of COVID-19 in their businesses. The survey revealed about 20% drop in revenues in 2020. The Chief Technology Officer of Smart Automation Energy gave a technical aspect on maintaining indoor air quality, positive building pressure and sick building syndrome to deliver healthy air quality.

Furthermore, in a report, the IEA acknowledged the current crisis as the most severe plunge in energy demand since World War 2. With the sudden collapse in demand for fossil fuels, renewable energy has seen a steady rise as it proves the only resilient source of energy against the biggest global energy shock in 70 years. Renewable energy is predicted to grow by 5% this year alone, to compensate for almost 30% of the world’s declining demand for electricity.The recorded webinar can be accessed via the link, https://www.youtube.com/watch?v=qBCFL5nRTVs

M i d d l e E a s t & N o r t h A f r i c a

Corporate Leadership in Times of Crisis

On 18th May, Arabia CSR Network attended a webinar on corporate leadership in times of crisis in-line with the 10 principles of UN Global Compact. The discussions were led by UN Resident Coordinator for the UAE and CEO of Chalhoub Group. The UN has been a catalyst even to the private sectors during this pandemic and launched the UN Business Guide: COVID19 https://www.unocha.org/sites/unocha/files/GHRP-COVID19_May_Update.pdf ).

The CEO talked about how the Chalhoub Group has adopted human centered approach in its business (employees, stakeholders and community) and increased the virtual team engagements including e-learning, developed compassion to ensure mental well-being of its employees.

Talking about effective leadership, the key attributes are calmness to deal with tough business situations, transparency with the employees/ stakeholders/ partners/ shareholders, honesty, avoid building impractical hopes, ability to listen and develop trust, and learning from mistakes if certain decisions fail.

UN Resident Coordinator for the UAE concluded by saying that COVID-19 has re-emphasised what UN did while launching the 17 SDGs to prioritise the areas of utmost importance. We have to learn from this experience in a positive way now. The participants of the webinar were also encouraged to connect with UN Global Compact Local Network of UAE on these issues and engage with stronger interactions.

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ACSRN News & Events

Feeding a Thirsty World: Food and Water SecurityA rising global population, changing weather and climate patterns disrupts food and water availability, requiring innovative and forward-looking approaches to secure food and water for vulnerable populations. Facilitating strong interactions on food and water security, Arabia CSR Network joined Emirates Environmental Group to organise the 2nd panel discussion virtually on 28th May titled ‘Feeding a thirsty world: Food and Water. The panel welcomed speakers from the International Center for Biosaline Agriculture, Food Security Office of the UAE, and Alliance for Water Stewardship in Scotland and Nestle Waters EMENA to share their experience and innovation in these areas. The objectives of this discussion was to explore the risks in the UAE and the region, to understand the various ways through which organisations in the UAE and the region are working to effectively contribute to UN SDGs and to discuss the best practices to promote water conservations and food security techniques.

It was connected with the UAE Water Security Strategy 2036, which aims to ensure sustainable access to water during both normal and emergency conditions in line with local regulations, standards of the WHO and the UAE’s vision to achieve prosperity and sustainability. On the same note, Food Security Office in the UAE aims at enabling all citizens and residents to have access to sufficient, safe and nutritious food for an active and healthy life at affordable prices at all times, including emergencies and crises. The Director General of International Center for Biosaline Agriculture opened her statements by presenting the dangers and impacts of world hunger and malnutrition in its many forms. She also offered water source and agri-aquaculture farm solutions to combat these problems. Senior Research Analyst, UAE Food Security Office, emphasised The Ministry of State for Food Security’s dedication to achieving the National Food Security Strategy 2051 using technological advancements, revised labeling systems on food packaging and engaging the community in competitions such as the UAE FoodTech Challenge.

Chief Executive of Alliance for Water Stewardship expressed the urgency for water security strategies on a global and regional scale, and highlighted AWS’s five-step, standard, framework for sites to implement water stewardship Regional Corporate Affairs & Sustainability Manager at Nestle MENA, spoke on the brands water stewardship journey. Nestle is addressing water challenges within their factories through a phased approach that tackles the three R’s. By 2025 all Nestle water factories will be certified by AWS—currently 22 factories are certified. This session was an effective engagement platform and welcomed active participants who showed their keen interest in the topic of Food and Water Security by asking engaging questions to the expert panelists. The insightful answers left everyone feeling satisfied with the knowledge gained from the virtual event. For full webinar, please follow below link:https://transcripts.gotomeeting.com/#/s/4bce2662c52cf0eedffce0f78c5f1dcb74b4fa1efaaca14fed14f3cfcbb458e9

FEEDING A THIRSTY WORLD

SECURITY&Date: 28th May 2020

2nd Panel Discussion

VIRTUAL PLATFORM

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Regional News

International News

Hawkamah Online WorkshopsSince being set up in 2006, the Hawkamah Institute for Corporate Governance has been collaborating with government, companies, regulators, and financial institutions in the region to improve the level of governance understanding and application. The Institute was founded by international organisations including the OECD, the IFC, and the World Bank, and regional organisations such as the Union of Arab Banks and the Dubai International Financial Centre (DIFC) Authority. The Institute grew out of the recognition of a growing need for a regional organisation working on the ground, and since then Hawkamah has been at the forefront of corporate governance debate in the region.

Due to its ongoing commitment and high professional and ethical standards, it has been a key player affecting governance practices in the region. The organisation has promoted the advancement of prosperity and sustainable development through good governance and positive change reforms. The organisation aims to provide the region's companies and boards with practical tools on how to improve corporate governance. Arabia CSR Network has a strong working relationship with Hawkamah for many years now and is delighted to share with its readers the following online workshops that are slated to be held by Hawkamah in the month of June.

Essential of Corporate Governance on the 7th June: Designed for current and aspiring directors and senior managers, this course focuses on the implementation of best-practice solutions for specific corporate governance challenges. The course explores international best practices, practical insights into Governance and Board leadership.

The Board-Effective Board Composition on the 21st June: An effective board of directors is a board having a great diversity within its directors which does not only cover gender but diversity in general. Board composition best practices are aimed at having the most effective board, which allows your board to maximize performance and strategy. Criteria such as independence, diversity, commitment, expertise play a key role in setting up an effective role.

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The Competent Boards Certificate Programme and ESG Leadership during and post-COVID-19

The COVID-19 crisis has shown that leaders are more resilient and are gaining the respect and praise of their stakeholders when they take into consideration ESG (Environment, Social, and Governance) issues, lead with integrity, and have the knowledge and courage to support their stakeholders and the societies they operate in, according to Competent Boards.

Competent Boards based in Canada has been organising interactive online discussions with leaders and peers from all over the world, including the Chair of the International Chamber of Commerce and former CEO of Unilever. As Competent Board rightly says, - it is indeed more important than ever for board members, executives, investors and those advising them to stay alert and educated to be resilient and emerge from the crisis as a respected leader.

Competent Boards provides professional development and advisory services focused on bringing ESG, Climate and Sustainability insight to boards, investors and executives globally. The faculty delivering the highly praised online Competent Boards Certificate Programme consists of over 70 of the world’s leading board members, C-suite executives, investors and experts.

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International News

GRI Announces Launch of Waste standards

Ethical Corporation Magazine’s Latest IssueThe May issue of the Ethical Corporation magazine tackles the ‘New Normal’ in light of the havoc caused by the aftermath of the COVID-19 pandemic. The magazine questions whether the new normal needs to be clean, circular, low-carbon and inclusive. But is that realistic? What does that really look like? How can we get there? The issue includes reportage from some of the top writers in the field and also includes commentary from the magazine's community of distinguished thought-leaders and professional practitioners. The issue includes; insights into how COVID-19 has impacted the strategy at leading sustainable business platforms, reportage on the importance of biodiversity and why failure to implement zero-deforestation commitments will lead to future pandemics, analysis as to whether the pandemic will flatten the climate curve by speeding the energy transition, plus there’s insights into issues such as fair tax, executive pay, the financial burden of the crisis to the low-paid workers and a whole lot more. To find out more, please visit: https://bit.ly/2zART9a

Trust in Science Saves LivesThe United Nations Department of Economic and Social Affairs issued a policy brief in May which highlighted the importance of science and the need for the global community to trust it. The brief stressed on the fact that in order to protect the lives of people and with more than 3 million confirmed cases of COVID-19 around the world, the global response to the pandemic requires a far more collaborative relationship between scientists and policymakers – and more public trust in science. The brief further stressed that scientific assessments on COVID-19 are similar around the world but the time and manner of response vary considerably across countries. There is a need to reassess the functioning of science-policy interface systems, where they exist; and to build them up where they are weak or non-existent, in order to preserve trust in science and government. In order to succeed in this, public trust in science is essential for science-based policies to succeed. Where public trust is high, clear and direct and where incorrect and damaging information is effectively countered, communications from scientists are likely to be most effective. In the case of COVID-19, all individuals must trust the scientific guidance if they are to alter their behavior and lower the rates of transmission. For instance, the phrase “flatten the curve” has proven effective in encouraging people to remain indoors to limit the spread.

Additionally, scientific assessment must be used properly, and governments must act with greater urgency on global scientific assessments. International collaboration between scientists and experts is a powerful way of bringing evidence and scientific consensus to the attention of policy makers and to inform their actions. To find out more, please visit: https://bit.ly/2ZSMuVF

In the month of May, the Global Reporting Initiative (GRI) announced the launch of GRI 306: Waste 2020, the first globally applicable tool for organisations to report and communicate on their waste impacts. The Waste Standard introduces a stronger relationship between materials and waste to assist reporters in identifying and managing their waste-related practices, and impacts, throughout their value chain. By including updated disclosures, circularity and waste prevention concepts, the Waste Standard reflect global best practices on waste management. This provides for a practical and usable tool and harmonisation with SDG 12. GRI 306: Waste 2020 includes two management approach and three topic-specific disclosures that will support organisations in many ways such as understanding and publicly reporting how procurement, design and use of materials leads to waste-related impacts, providing comprehensive insights into the quantity and quality of waste – including its causes, where it is generated and how impacts are managed, identifying and reporting on circularity and waste prevention opportunities and actions and finally, assessing and taking responsibility for waste generated throughout the value chain, both upstream and downstream.To find out more, please visit: https://www.globalreporting.org/Pages/default.aspx

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Member News

Dubai Electricity and Water Authority (DEWA) has emphasised on protecting the health and safety of the society, by launching a programme to regularly disinfect its electric-vehicle Green Chargers at petrol stations across Dubai. The move has been made in collaboration with Emirates National Oil Company (ENOC) and Abu Dhabi National Oil Company (ADNOC). This is part of DEWA’s participation in the National Disinfection Programme.

The move reiterates DEWA’s claims of undertaking all the necessary and precautionary measures to limit the spread of the novel coronavirus (COVID-19), in line with the directives of the wise leadership and the recommendations of the World Health Organisation (WHO). The MD and CEO of DEWA said that DEWA supports the national efforts to contain the coronavirus outbreak, working closely with all the organisations participating in the National Disinfection Programme. This is in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to ensure the highest levels of safety and protection for all society members, and prevent the spread of the disease.

He further added that the National Disinfection Programme has been successful thanks to the concerted efforts of individuals and organisations and the awareness of all citizens, residents, and visitors who have been responsible and stayed home. DEWA has undertaken a number of precautionary measures to ensure the health and safety of its customers and employees, while continuing to deliver electricity and water services according to the highest standards of availability, reliability and efficiency. He said that DEWA had installed over 240 electric-vehicle charging stations (EV Green Chargers) across Dubai and has extended free charging until 31st of December 2021 for non-commercial users registered in the EV Green Charger Initiative. To find out more, please visit:https://www.utilities-me.com/news/15470-dewa-launches-disinfection-programme-for-its-ev-green-chargers

DEWA Launches Disinfection Programme for its EV Green Chargers

EGA Young Engineers and Professionals Support UAE Universities Students’ Distance-Learning

Emirates Global Aluminium has been contributing to the knowledge of future generations by encouraging its young engineers and professionals to support UAE university students’ distance learning by leading online seminars on science, technology, engineering and mathematics in industry. UAE National engineers and professionals under the age of 30 have led all the online seminars which have been held with students from the American University of Sharjah, UAE University, and the Higher Colleges of Technology.

This is being carried out under EGA’s ‘Ambassador Programme’ in which young EGA engineers and professionals usually visit universities in person to discuss the industrial applications of students’ fields of study. So far more than 600 UAE university students have participated in these sessions until end of 2019.

According to the CEO of EGA, the goal of the Ambassador programme is to encourage young people in their studies and ultimately to pursue careers in science, technology, engineering and mathematics. He added that UAE needs bright youngsters working in these fields, not just at EGA but for the further development of the country.To find out more, please visit: https://www.cbnme.com/news/ega-young-engineers-and-professionals-support-uae-universities-students-distance-learning/

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As half of the entire world’s population finds itself under lockdown in order to shelter from the deadly coronavirus (COVID-19), top policy and medical experts are scrambling to find the answer on how to keep the global economy from collapsing and save tens of millions from losing their jobs and falling into poverty. According to the UN Chief Economist and Assistant Secretary-General at UN DESA, the organisation is closely monitoring the COVID-19 crisis’ impacts on social, economic and sustainable development, sharing findings in a series of policy briefs.

He said that the crisis is having a deep and negative effect on public health all around the world as infections soar and death rates mount. The containment measures that are imperative from the public health perspective have generated an unprecedented contraction in economic activity, threatening jobs and income, and the survival of millions of smaller enterprises. But the crisis does not affect all equally—it threatens to widen some of the inequalities that already exist between and within countries, and the poorest and most vulnerable are most exposed to the adverse effects, while least able to deal with them.

On the question of whether it is possible to flatten the curve without flattening the economy he said that the first imperative is to halt the spread of the virus. At the same time, emergency economic and financial stimulus measures must be put in place to prevent the deep economic contraction from leading to widespread bankruptcies, unemployment and deep-reaching, permanent adverse social outcomes. The immediate measures should also be formulated with an eye to the recovery and contribute to a more sustainable and resilient future.

For example, the social protection measures put in place in the emergency response should be maintained and integrated into a comprehensive and permanent social protection system that will strengthen the resilience to future shocks. He said that UN DESA will soon be releasing policy briefs taking a closer look at the impact of COVID-19 on Small Island Developing States as well as countries in Europe.

To find out more, please visit: https://www.un.org/development/desa/undesavoice/expert-voices/202049397#05/

Can we Flatten the Curve without Flattening the Economy?

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Ma’aden has solidified its status in the eyes of its contemporaries with its successful CSR commitment through the SMP which has achieved clear beneficial outcomes and impacts within the Company; the Northern Borders region; and also the national mining sector. Firstly, the SMP has already achieved beneficial outcomes for Ma’aden by providing 504 skilled local graduates, who are now employed at Ma’aden’s operations.

The SMP is also making the regional mining industry more efficient and cost effective, by creating a qualified and trained local workforce, thus contributing to economic growth and local employment in the Northern Borders Region. The SMP is increasing English proficiency and Health and Safety performance across the sector regionally, this is assessed via the pre-defined KPIs. Finally, the SMP positively benefits the national mining sector by consolidating and harbouring highly-specialised mining knowledge for the future of mining in Saudi Arabia. The SMP has already successfully forged international knowledge sharing partnerships, for example with The Missouri University of Science and Technology (MST) in the USA.

Ma’aden is a Saudi based mining company with a diverse portfolio although it primarily deals in the mining of gold base metals. It is a regional powerhouse in the infrastructure industry. The company was introduced as a Saudi owned joint stock company in 1997. At the time, it was created in order to help in the development of the country’s mineral resources. Gradually, stocks of the company were floated in the market. Currently the Saudi government is still the majority stock holder with 50% of the shares. The headquarters is in Riyadh with several branches spread across the Kingdom.

Over the last two decades, the company has increased its investments to 100 billion Saudi riyals and is engaged in several long-term mining projects in the region. The strategic objective of the company is to move towards commercial, financial and operational excellence in a sustainable approach that focuses on growing locally while at the same time strengthening the global brand too.

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Best Practices From The ArchivesSaudi Arabia Mining Company (Ma’aden)

Arabia CSR Awards 2018 - Winner - Partnership & Collaboration Category